Figures Released From UK
As expected, with no major news out, yesterday was a slow day on the markets.
We did have some talk on the Euro front with further warnings that there may still be a risk of deflation and however unlikely this may be, the ECB does have the will to ease monetary policy.
In Australia, RBA minutes were released signalling rates will be on hold for the foreseeable future as inflation is stable and overall growth is down. This has allowed GBP/AUD to improve to comfortably above the 1.81 mark.
In the UK, Mark Carney warned that constantly increasing house prices are the number one risk to the economy and suggested possible responses. Anyone who has tried to get a mortgage recently will have probably noticed how increasingly stringent and even intrusive the checks now are.
The big news of the day is the just released CPI, PPI and RPI figures from the UK. CPI came in at 1.8% which was above the expected 1.7%. PPI for April was also above forecasts at 0.0%, compared to -0.2%, although it was down on the year.
There has been a decent bounce from GBP on the back of this news, with GBP/EUR testing 1.2300.
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